Have Insiders Been Selling TeamLease Services Limited (NSE:TEAMLEASE) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell TeamLease Services Limited (NSE:TEAMLEASE), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for TeamLease Services

The Last 12 Months Of Insider Transactions At TeamLease Services

In the last twelve months, the biggest single sale by an insider was when the insider, Mohitkaran Gupta, sold ₹5.8m worth of shares at a price of ₹2,379 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of ₹2,560. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 45% of Mohitkaran Gupta's stake.

TeamLease Services insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of TeamLease Services

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests TeamLease Services insiders own 0.3% of the company, worth about ₹125m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At TeamLease Services Tell Us?

It doesn't really mean much that no insider has traded TeamLease Services shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the TeamLease Services insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for TeamLease Services you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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